Goldman Sachs Whistle Blower!

E

errol43

New Member
Silver Stacker
Did any SS members catch Greg Smith, the whistle blower that used to work for Goldman Sachs.. It was on the 7.30 report Thursday..Said GS made $5billion in 2002 and $30 billion in 2006. All made from derivatives ..Said it was BS that it wasn't rich peoples money that they were gambling with but more like Teacher's retirement funds.

Don't know how to post a link to the 7.30 report..Maybe another SS members will do the honors as it is well worth watching.

I have always thought that derivatives would bring the financial world down and this may well prove to be true.

The first part of the 7.30 report is also interesting, detailing how the ATO can screw you, The RE boys had better watch out. :)

Hoping that someone will do the honors and post the link.

Regards Errol 43
 
He's not saying anything different about compared to a few dozen guys on here but it's always good to hear from an ex-insider.

7:30 report said:
GREG SMITH: That's a good question. I certainly didn't do this to immediately go back and work on Wall Street again. But what I would say - and I saw this in a lot of the emails I got from just normal people who don't work on Wall Street - is I think Wall Street gets lost in its own bubble sometimes. And what I'd like your viewers to know is there's this perception out there that Wall Street is is it's about rich people gambling with other rich people's money. The little the secret that Wall Street doesn't want people to know is the real big investors in the market are the pension funds, the retirement funds, the mutual funds that hold people's savings. And I actually think there's a need and desire by people outside of Wall Street to want a greater fiduciary standard. The great irony of all of this is betting against clients, ripping off a teacher's pension fund, selling a philanthropy - a product they don't understand, these are actually technically legal. My whole point is these things should become illegal. And that's the whole reason no-one's gone to jail for the crisis is the system is effectively rigged so Wall Street makes all the profits on the upside, but when things go wrong it gets socialised to the public.

LEIGH SALES: What lessons, if any, did the financial industry learn from the Global Financial Crisis?

GREG SMITH: I think very few lessons have been learnt. And I'll give you an example: in the States there was a very big deal where JPMorgan lost more than $6 billion on bad trades. And this happened this past summer. And the CEO of the company gets called in front of Congress and he's trying to convince Congress that this was just some kind of hedge. The truth, and everyone on Wall Street knows, this was a reckless gamble. The five biggest banks in the States are actually bigger now than they were before the crisis and the biggest issues that led to the crisis, which were banks betting with their own money and complicated securities called derivatives, are still continuing unabated. So, I think there's this perception that things have been fixed, but in fact there's less competition and the bonuses are just as big and the behaviour's just as reckless, frankly.
Click to expand...
 
I worked in a derivatives section in one of the Investment Bank in Australia

You guys won't believe how easy is to make money from derivatives out of almost nothing. Before 2008 it is a dram place to be huge reward.

But since Lehman Brothers collapsed, the whole derivatives were shrinking. Public start to aware their investment on derivatives products nothing but a peace of paper contract with not guarantees at all, example, the ELN (Equity Linked Note) you think you have the Equity backed up? Sorry, non of the store was lock, only thing we do is the hedge (which in internal only). So when LB when done, people nothing.

He mentioned this whole game is gambling, but I can add the looser usually are the payers not the hosts. 6 bullion lose for JP is just quoter of their monthly profit I'm not sure this will be much to them, but sure thing is the employee will get a bit less bonus this year.

When I meet a stacker in SS, I didn't think at all start to stack physicals. Making money from paper and exchange with physicals sounds work well to me :)
 
Now the ? to ask is do any of the Super fund so called experts deal in derivatives with the super monies of the workers who don't or can't have a SMSF.

If they, the experts in finance, too gamble with derivatives, then it is the end game for funds in these super funds..Give you 5% on your super less charges and use your funds for a visit to the Casino.

Regards Errol 43
 
errol43 said:
Now the ? to ask is do any of the Super fund so called experts deal in derivatives with the super monies of the workers who don't or can't have a SMSF.

If they, the experts in finance, too gamble with derivatives, then it is the end game for funds in these super funds..Give you 5% on your super less charges and use your funds for a visit to the Casino.

Regards Errol 43
Click to expand...
You got it! We have a huge Risk System it consolidate all the holdings, long/net position, cash custodian come up with an Exposure = how much we can gambling in the market is not greater than the agreed amount on exchange, but of course the host will take charges on top of the players as well. Most of the player as you mentions are the pension, super, and hedge funds (all using someone else's money transferring the money from on pocket to another pocket).

To be honest, I cut all my insurance which contain investment or saving money part, also I don't put any money into those stupid funds and make other people rich and poor myself.
 
You must log in or register to reply here.
Back
Top